WASHINGTON — The Federal Reserve signaled Wednesday that it may act sooner than previously planned to start dialing back the low-interest rate policies that have helped fuel a swift rebound from the pandemic recession but have also coincided with rising inflation. The Fed's policymakers forecast that they would raise their...
US Home Construction up a Moderate 3.6% in May
WASHINGTON — U.S. home construction rose 3.6% in May as builders battled a surge in lumber prices that have made homes more expensive. The May increase left construction at a seasonally adjusted annual rate of 1.57 million units, the Commerce Department reported Wednesday. Applications for building permits, looked to for...
Fed Keeps Key Rate Near Zero, Sees Inflation as ‘Transitory’
WASHINGTON — The U.S. economy is quickly strengthening, inflation is showing signs of picking up and the nation is making progress toward defeating the viral pandemic. But on Wednesday, Chair Jerome Powell made clear that the Federal Reserve isn't even close to beginning a pullback in its ultra-low interest rate...
Retail Sales Fell 1.1% in November, Biggest Drop in 7 Months
NEW YORK — Americans held back on spending during the start of the holiday shopping season, a troubling sign for retailers and the state of the U.S. economy. U.S. retail sales fell a seasonally adjusted 1.1% in November, according to the U.S. Commerce Department. It was the biggest drop in...
Consumer Spending up a Slight 0.5% as Virus Maintains Grip
WASHINGTON — U.S. consumers increased their spending by a sluggish 0.5% last month, the weakest rise since April, when the pandemic first erupted, and a sign that Americans remain wary with the virus resurging across the country and threatening the economy. The October gain reported Wednesday by the Commerce Department...
US Mortgage Rates Stay at Record Low 2.72% for 30 Years
WASHINGTON — U.S. long-term mortgage rates remained at record lows this week as the coronavirus pandemic continues to threaten the economy. Mortgage finance giant Freddie Mac reported Wednesday that the average rate on the 30-year fixed-rate home loan was unchanged this week from a record low 2.72%. A year ago,...
Picture of US Economy Is Worrisome as Virus Inflicts Damage
WASHINGTON — Gripped by the accelerating viral outbreak, the U.S. economy is under pressure from persistent layoffs, diminished income and nervous consumers, whose spending is needed to drive a recovery from the pandemic. A flurry of data released Wednesday suggested that the spread of the virus is intensifying the threats...
Jobless Claims Up for 2nd Straight Week as Virus Worsens
WASHINGTON — The number of Americans applying for unemployment benefits rose last week for a second straight week to 778,000, evidence that the U.S. economy and job market remain under strain as coronavirus cases surge and colder weather heighten the risks. The Labor Department's report Wednesday said that jobless claims...
With Spending Already Falling, Virus Spike Threatens U.S. Economy, Says Fed Chief
WASHINGTON — Federal Reserve Chair Jerome Powell said Tuesday that the nationwide surge in confirmed coronavirus could slow the economy in the months ahead by discouraging consumers from spending. “We’re seeing states begin to impose some activity restrictions," Powell said in an online discussion with the Bay Area Council, a...
Dow Returns to Record, S&P 500 Adds to Gains on Vaccine Hopes
NEW YORK — The Dow Jones Industrial Average returned to a record Monday for the first time since plunging nine months ago in despair about the pandemic, riding a swell of optimism that a vaccine may soon control the coronavirus and the economic destruction it’s caused. Moderna said early in the morning...